Things To Consider

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She/He/They very well could be.  There are  some very reputable investors out there.  Some have been in the business for years - over generations. They offer a fair price for the home and close as promised. It’s the “other” investor that warrants caution.  

TED TIP:  Ask “Are you a licensed real estate agent?” If not, why not?

From our perspective, the answer is a resounding “YES”!  There's some level of comfort in knowing that the person you’re trusting mom’s nest egg on has the bare minimum - real estate education, the  general background check required for licensure, some level of accountability (to a broker and a governing body).

Are you dealing with a Missouri Licensed Real Estate Agent? Click Here to find out.

TED TIP: Prior to engaging the services of someone I do not know, I've been know to check them out on Missouri Case Net. A note of caution - you'll need to make sure that you have the right person. There are many "John Smiths" so middle initial and County come into play.  So when in doubt, ask the person you're  considering if it's them and also ask for business/client references. 

The St. Louis Better Business Bureau (BBB) as been the gold standard for years. You may want to check out any business that you are considering using on their website. 

Could be put don’t bank on it. The  investor playbook instructs that the less they pay, the more they can make when they re-sell the home (whether they update it or not). 

TED TIP: Hire a  knowledgable LICENSED full-time real estate agent/advocate to cover your back (making sure that you’re getting a fair price and signing a contract).  I’ve been working with investors, since 2003 and know the tricks of the trade. 

Yes, the contract type matters. If the investor is a REALTOR®, she/he has access to the contracts that are approved by the local board of REALTORS®. Otherwise,  who know’s what contract you'll be asked to sign. There is a “standard” Board of REALTORS® contract and a “special sales contract”.  Which one is used matters - as it relates to inspections/occupancy. 

TED TIP - an experienced REALTOR® who represents you will make sure that you’re protected.

The smug answer is “does it really matter?”. Well, for some sellers, it does. The idea of a developer/builder/investor tearing down all those memories and building a brand new home in its place  may be a deal breaker (for the emotional seller). For others, the thought of  the investor simply selling the home to some other investor without doing anything to it (flipping it), is a morale issue (as it should be).  Why needlessly leave money on the table? 

TED TIP - In the rare instance that it makes sense to sell to an investor, it feels much better when the investor updates the house and sells it to a buyer who will live (and enjoy) the home for years to come - just like your family likely did. Second best may be that the investor who updates the home and uses it as a rental. The investor who does this is the true “speculator“ - who has skin in the game and really earns whatever profits result from the risk taken.  Ah, I long for the good old days. 

Like people in general, some real estate investors are above board, honorable, wonderful people while others talk a good game, seem to care, but in the end are self serving . It’s difficult to determine who’s who.  We strongly suggest that you  engage an experienced, licensed real estate agent (a REALTOR® in good standing)  who can look after your best interests. More often than not, you'll end up walking away with more money in your pocket, even after paying a real estate commission to your new best friend.